September 22, 2008	Monday	Ramazan 21, 1429

LAHORE, Sept 21: The State Bank of Pakistan has been asked to review its decision to print Rs5 currency notes as already a stock of 300 million coins of same denomination is enough to meet the requirement of at least next nine years.

The suggestion has been part of a National Accountability Bureau’s preventive study of the Pakistan Mint regarding the latter’s operational/production losses.

NAB Chairman Naveed Ahsen had formed a seven-member committee headed by its bureau’s Punjab chief Major Shahnawaz Badar (retired).

The committee, set up under section 33 (C) of National Accountability Ordinance 1999, also had representation from the finance ministry and the SBP. It has finalised its recommendations and submitted them to the NAB chairman last week.

According to the report, the SPB had a stock of over 300 million coins of Rs5 which was sufficient to meet its requirement for next nine years. Besides this, a surplus stock of 212 tons of nickel worth over Rs300 million, was lying in the Pakistan Mint since 2005 should be utilised for further manufacturing of Rs5 and Rs10 coins.

In case of no further utilisation, a board of officers may be constituted under the supervision of finance ministry to sell out by open-bidding the surplus 212 tons of nickel.

“The prolonged retention of this extremely expensive metal may result in attempts of theft/pilferage,” the committee observed.

One Rs5 currency note costs the government Rs1.12 and a coin of same denomination Rs3.71. The life of (Rs5) currency note is three to four months while of the coin 30 years.

The committee also suggests that the finance ministry may order a high-level inquiry in coordination with the SBP into the circumstances over procurement of raw material (nickel) resulting in accumulation of Rs5 coins sufficient for next nine years and stockpile of 212 tons of nickel.

“There is also a dire need to restructure and reorganise the Pakistan Mint by establishing new sections like human resource, purchase, marketing, inspection, quality control, and planning and control with qualified staff and its management may be reorganised on corporate principles like Pakistan Security Printing Corporation,” the committee proposes.

It also suggests that a case may be initiated for up-gradation of existing grades of employees and promotion policies be in line with Pakistan Ordnance Factory, Wah, so that they are motivated and have incentive to rise in service. This will help reduce the chances of corruption and corrupt practices amongst them.

The NAB committee says that regular training should be imparted to workers, staff and officers and workforce be reduced by gradually phasing out surplus and inefficient workers.

It also proposes that old machinery should be scrapped and disposed of and latest technology be introduced to upgrade the existing system. “Modern automatic plant with coin counting facility may be installed.”

It says that double entry accounting system should be introduced and procurement be dealt with by account officer (E) while account officer (F) be responsible for audit and payments. Internal audit should be made effective and competent staff be inducted.

The Pakistan Mint must acquire its own weighing scale for inbound consignment of metal. For procurement of metal and machinery, the rules and regulations specified by PPRA should be followed in letter and spirit.

The committee further proposes that a member from the finance ministry should be part of the purchase committee especially metal procurement in bulk to ensure adequate check. Besides, the members of purchase/procurement committee should be rotated after regular interval of time. The demand form metal should be proportionate to SBP’s indent for coins.

It proposes that SBP may evolve a policy of forecasting the projected requirement of coins of different denominations for next 10 to 20 years.

When contacted, NAB’s Punjab investigations director Brig Farooq Hamid (retired), who was also part of the committee, said: “These recommendations, if implemented, will go a long way in reviving the glory of this national asset which has been badly neglected in the past.”